An optimistic tone has been evident....>

BOND SUMMARY: An optimistic tone has been evident as broader sentiment continues

to oscillate on the back of reports surrounding U.S.-China trade talks. Warm

rhetoric re: the latest round of negotiations from both sides of the table,

coupled with China's assertion that cancelling an off'l trip to U.S. farmlands

wasn't related to bilateral talks, has weighed on core FI space from the off.

- T-Notes trade flat at 129-22, sticking to a very tight range following a lower

open. Eurodollar contracts are 0.5-1.0 tick higher through the reds. 

- Japanese markets are closed for a local holiday, which may be limiting

liquidity. It also means that U.S. Tsys don't trade until the London morning.

- In Australia, YM is unch. and XM sits 1.0 tick higher. Bills trade -2 to +2

ticks through the reds. Aussie bond yields last seen 0.3-1.6bp lower, curve runs

flatter. Flash CBA PMIs indicated that Australia's m'fing sector moved into

contractionary territory, but the services sector returned to expansion. Focus

turns to the A$500mn worth of ACGB 2.75% 21 Nov 2029 supply at the top of the

hour.